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Under a hybrid pecuniary bequest, as under a pure
pecuniary bequest, the dollar value of the bequest is set
as of the testator's date of death or the alternative
valuation date. If the executor distributes cash in
satisfaction of the bequest, the beneficiary receives the
equivalent of a pure pecuniary bequest. However, if the
executor distributes other property, the beneficiary will
participate in the appreciation or depreciation of that
property. Estate of Goutmanovitch, supra at 774; Covey,
The Marital Deduction and the Use of Formula Provisions,
supra at 99-100.
Hybrid pecuniary bequests are used to ensure that the
testator's estate recognizes no income tax gain or loss if
appreciated or depreciated property is distributed. This
result obtains because the basis of the assets distributed
equals the value of the obligation satisfied. See Estate
of Goutmanovitch, supra at 773; Covey, The Marital
Deduction and the Use of Formula Provisions, supra at 99-
100.
Two methods of funding a hybrid pecuniary bequest are
significant in these cases: The aggregate approach and
the fairly representative approach. Under the aggregate
approach, the assets distributed must have an aggregate
fair market value at the time of distribution greater than
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